HR Glossary  >   Appraisal


What is Appraisal?

An “Appraisal” is an act that measures the employee’s performance based on the predefined goals
and set objectives for the future along with guidance for their training and development needs. It helps the
managers identify the achievements and shortcomings in the workforce’s performance. The appraisal program
provides a clear picture of the employee’s and the organization’s performance, including the need for guidance
wherever necessary for future improvements.

For instance, a company conducted the annual performance appraisal process.

  • The employees' performance was evaluated on the established parameters.
  • The best performing employees were identified and rewarded.
  • And those who lacked the required skills were provided with the training.


Frequently Asked Questions About Appraisal

How many types of appraisal are there?

An organizational appraisal can be categorized into the following types based on where and how
they are performed.

  • 360 Degree Feedback
  • Customer Reviews
  • Assessment Center
  • Psychological Appraisal
  • Human Resource Accounting
  • Management by Objective (MBO)
  • Behaviorally Anchored Rating Scale (BARS)

Which characteristics of an employee should be considered for an appraisal?

The following skills should be considered during an appraisal cycle.

  • Communication
  • Problem-solving ability
  • Quality and accuracy
  • Punctuality
  • Goal accomplishment ability
  • Teamwork
  • Ability to meet timelines


What can be the most common errors in performance appraisals?

Various errors can be identified among performance appraisals which are detailed below.

Central Tendency Error: This error occurs when managers are unable to identify
good or bad performers. They often place all of his employees in the center of the rating scale, i.e., mark them
as average irrespective of the performance.

Strictness or Leniency Error: It is the same as central tendency error, but
managers either evaluate employees very strictly or very leniently instead of rating employees as average.

Halo Effect: Here, the manager gives a global rating to all the criteria on
which an employee is evaluated and cannot distinguish employees’ abilities in each factor.

Recency Error: Many times, managers may assess employees considering their most
recent performance or behavior and not for the entire review cycle period.

Personal Bias: Besides the incompetency of managers in the above four errors,
they are regarded as unintentional. However, personal bias is an intentional error. Managers may be found
involving their personal bias or preferences during employee appraisals. This may be due to like, dislike,
religious, or sexual bias.

What are the main components of an effective appraisal?

The essential components of an appraisal process are:

  • Honest and valuable feedback
  • Complete evaluation of employee’s targets
  • Appreciation for an employee’s exceptional work and training for areas where they lack.

What to consider for an appraisal meeting?

A manager should remember the following things:

  • Analyze all factors required for assessment.
  • Review the achievements made by the employee.
  • List out the employee’s efforts towards the organizational mission and vision.

Whereas, an employee should remember the following things:

  • Prepare a list of targets achieved during the given time.
  • Showing improvements in the form of documents.
  • Increase in performance as compared to the last appraisal.
  • Thinking and suggesting a better plan to improve the less productive area.

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